Pertamina's new executives installed
Pertamina's new executives installed
JAKARTA (JP): The government installed the new board of
directors of the state oil and gas company Pertamina on
Wednesday, as part of a restructuring program for the country's
largest state company being conducted in anticipation of the free
market era.
The government reduced Pertamina's board of directorates from
seven to six under the presidential decree No. 313/200, which was
signed on Nov. 11, 2000 but only revealed to the public on
Wednesday.
Newcomers to the board are Effendi Situmorang, who was
appointed to head the directorate of development, and Iin Arifin
Takhyan to head the directorate for the management of production
sharing contractors. Both are new directorates within Pertamina.
Formerly, the management of production sharing contractors was
held by a special agency under Pertamina, called the foreign
contractors management body (BPPKA).
Iin was an expert member of staff for the Minister of Mines
and Energy before taking over the new position.
Effendi was the vice president of American oil and gas company
Unocal Indonesia Company until his appointment at Pertamina.
Effendi was one of several workers for foreign investors
allowed to take a top position in the state company, which has
previously been controlled by government and military officials.
Baihaki Hakim, former president of American oil and gas
company PT Caltex Pacific Indonesia, who was appointed as
Pertamina's president early last year, retained his position at
the helm of the company.
Also retaining their post was finance director Ainun Naim,
while Gatot K. Wiroyudo and Ariffi Nawawi were appointed to new
positions as Pertamina's upstream and downstream directors
respectively.
Previously, Gatot was Pertamina's director for exploration and
production, while Ariffi was processing director.
The government dismissed the director for general affairs,
Sjahrial Daud; director for fuel logistics and distribution,
Harry Poernomo; and the director for shipping, port and
communication affairs, Ilham Sjarif.
Their directorates have been merged into the directorates of
downstream, and development.
"One month after you start working, the board of commissioners
(of Pertamina) will demand that the new directors explain their
future programs, actions and operational strategies," Minister
for Energy and Mineral Resources Purnomo Yusgiantoro said during
the inauguration ceremony.
Purnomo was referring to Pertamina's board of commissioners,
of which he is a member along with three other ministers and the
head of the National Development Agency (Bappenas).
"I want Pertamina in the future to become an organization
whose principal activities are the decentralization and
classification of core businesses," Purnomo continued.
He said that Pertamina's core business would be divided into
the upstream sector, which comprises exploration and production
activities, and the downstream sector which consists of
distribution and trading activities.
Ultimately, he said, Pertamina would become a limited
liability holding company.
"Pertamina must improve or cut out inefficient business units
and press production costs, so that its trademark will be
cheaper, quicker and better," Purnomo continued.
"The results should be measurable and entirely transparent,"
he added.
The government last year submitted to the House of
Representatives a new oil and gas bill which, if enacted, would
replace Law No. 8/1971 on Pertamina and Law No 44/1960 on the oil
and gas industry.
The bill dismantles Pertamina's present dual-role as a
regulator and an operator in the oil and gas industry, instead
turning it into a limited liability company.
Baihaki has said he anticipated the bill, and explained that
if it became effective Pertamina would simply relinquish its
directorate for the management of production sharing partners.
(bkm)